Paul Cable Source Income Statement Sales Revenue $8765 Costs...
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Accounting
Paul Cable Source Income Statement
Sales Revenue $8765
Costs
Wire 1500
Plastic 800
Labor 2650
Utilities 350
Rent 1200
Other 350
Total Cost 6850
Operating Profit $1915
If Paul moves the business his sales revenues would increase 15 percent, wire costs would decrease by 5 percent, Labor and plastic would be up the same as sales, utilities would be reduced by 18 percent. Rent and other are unchanged Prepare a Differential Cost Analysis that would show Paul his results if he moves and the difference between the alternatives. What would you tell paul to do?
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